Established House vs New Build?

Reasons why people invest in both

Existing Property

Value Add Potential

One of the biggest draws of established homes is the ability to increase value through renovation or development. Investors can build a Granny Flat, subdivide the land, or cosmetically renovate to boost rental yield and property value. These “manufactured growth” opportunities aren’t as common with new builds, which are already at peak presentation.

Usually More Land

Established homes tend to be on larger blocks, particularly in older suburbs. More land means more options: you could extend the dwelling, subdivide, or simply benefit from capital growth driven by land scarcity. In many markets, land is the real appreciating asset, not the building.

Unique Finishes & Character

Older homes often feature architectural elements or construction styles that new builds lack. From ornate ceilings to timber floors, these touches can make a property stand out. They also provide room for creative renovations that can appeal to niche tenant markets or owner-occupiers down the line.

New Build

Tax Benefits

New builds come with significant depreciation benefits. You can claim deductions on the building structure and its fittings under the ATO’s depreciation rules. Plus, with new homes, stamp duty is often only payable on the land component (not the total property value), reducing your upfront costs.

“Loop Hole” to Entry

Through builder/developer relationships or off-the-plan deals, some investors gain early access to projects with low or delayed deposit structures. In some cases, you can secure a property with minimal capital upfront, locking in today’s price for tomorrow’s growth.

Premium Rental Appeal

New builds are modern, energy-efficient, and low-maintenance, making them attractive to high-quality tenants. Features like ducted air, smart systems, or contemporary finishes can command higher rents. Plus, with no urgent repairs needed, your maintenance costs stay low in the early years.

Final Thought

There’s no one-size-fits-all, many savvy investors diversify across both established homes and new builds to balance capital growth, cash flow, tax efficiency, and renovation potential.